Business Directories

Bahrain banks' loans set to grow 10 pc

Manama, June 25, 2014

A spurt in industrial and commercial activity in the first half of the year suggests that bank lending in Bahrain is likely to grow at 10 per cent this year, reported the Gulf Daily News, our sister publication, citing a senior financial expert.

"The liquidity is there and with more activity happening now there is more demand for loans," stated Chiradeep Ghosh, senior research analyst at Bahrain-based regional investment bank, Securities and Investment Company (SICO).

"Saudi, UAE and Qatari banks are likely to witness loan growth of 12 per cent to 14 per cent, 8 per cent to 10 per cent and 12 per cent to 14 per cent respectively," he said.

He was speaking on the sidelines of a Bahrain Association of Banks' chief executives' luncheon meeting at the InterContinental Regency Bahrain yesterday.

Replying to a question he said that the banks and financial institutions in Bahrain were gearing up towards offering more loans after a lull and expressed the hope that this would reflect positively on the economic growth of the kingdom.

Earlier, in a presentation titled 'Buy, Sell or Hold? How analysts really rate banks', Mr Ghosh highlighted basic fundamentals of the banking sector across the Gulf.

His presentation revealed what matters most to equity research analysts when they evaluate financial institutions. Besides critical parameters and ratios what interests analysts in particular are capital adequacy ratios and their impact on the profitability and risk profile of banks, he said. The presentation was followed by a live case study.-TradeArabia News Service